May 17, 2024 11:12 GMT
Mid-Day Oil Summary: Crude Stable on Day
OIL
Crude is largely stable today after China data reinforced the uneven nature of the current economic backdrop, with consumer spending softer relative to industrial activity. Brent is on track for a modest rise of 0.6% on the week.
- Brent JUL 24 up 0% at 83.31$/bbl
- WTI JUN 24 down 0% at 79.21$/bbl
- The latest Baker Hughes rig count data is due for release at 13:00ET. The US oil rig count last week fell to the lowest since November at 496.
- China apparent oil demand fell by 3.01% year on year in April to 14.64mbpd, Customs General Administration data showed, cited by Bloomberg.
- China is replenishing crude reserves at a rapid rate this month amid lower oil prices with more than 30mbbls of crude added to inventories over the past month, according to Kpler and Vortexa.
- PC exports of Kazakhstan crude are operating normally Friday according to comments by Kazakhstan’s Energy Minister.
- Macquarie isn’t so confident that an extension of OPEC+ curbs is certain. Saudi Arabia will adopt a “pragmatic path” with a “bias towards a tighter market, but not at all costs,” according to Bloomberg.
- European energy markets have seen signs of stabilization over the last weeks, but markets are not yet “fully out of the woods”, Engie CEO Catherine MacGregor said during the Q1 earnings call.
- While Venezuela’s opposition has rallied around a new presidential candidate, this is unlikely to change US oil sanction policy, Platts said.
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